Tax for Covid-19 wage subsidy can be paid over four years, says Donohoe

Tax for Covid-19 wage subsidy can be paid over four years, says Donohoe

Mr Donohoe rejected the suggestion that the scheme might be used by employers to purchase new machinery. Picture: Gareth Chaney/Collins

Minister for Finance Paschal Donohoe has said that any tax liability from the Temporary Wage Subsidy Scheme can be paid over four years.

"If any tax liability does arise the Revenue Commissioners will allow it to be paid back over four years," he told Newstalk’s Pat Kenny show.

Mr Donohoe said that he anticipated that any such tax liability would be small, and given that this had been a very difficult year for many, he hoped that allowing the time frame to repay tax would be fair for all.

"Interest will not be charged and there will also be the option to pay the tax upfront and in one single payment."

The Minister said that 81% of employers who were on the previous scheme were now on the new scheme, an indication that the scheme was going to play a really important role in keeping people at work.

Mr Donohoe rejected the suggestion that the scheme might be used by employers to purchase new machinery. 

"The scheme was set up to protect jobs and incomes. What was important was that it was open to companies to use funding to hire new staff."

"However, if purchasing new equipment was going to make a company viable and continue employing people, then, in theory, that option was open to them," he said.

More in this section